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The Closing Look

Byaaronmat-admin

Stock Market Commentary:

Stocks ended higher on Wednesday as investors digested a slew of economic data and the week-long pre-holiday rally continued. Durable goods orders were flat (unchanged) in November, beating estimates for a decline of -0.5%. U.S. personal income increased by 0.3% beating estimates for a gain of 0.2%. In the 12 months through November, the personal consumption expenditures (PCE) price index rose by 0.4% after rising 0.2% in October. Core prices, which exclude food and energy, rose by 0.1% after being unchanged in October. Meanwhile, U.S. consumer spending grew by 0.3% last month after a flat reading in October. Consumer sentiment came in at 92.6, barely topping estimates for 92.0. Finally, new home sales came in 490k, missing the Street’s forecast for 503k. Energy and material stocks led the market higher as these two beaten down areas continue to bounce from deeply oversold levels.

Gary’s Thoughts: We cannot begin to tell you how surprised we are at this jam to the upside of everything that had been left for dead. We are not surprised market rallied. We are surprised at what rallied. Oils,machinery,industrials,commodities led the way. As we said, if they can prove that THE low is being put in, would be huge for broader market as we head into the end of the year but be forewarned, last year, the boys jammed the Dow 700 points in 2 days only to see it stall soonafter and then drop starting the first day of the New Year. We are open to anything. We rationalize nothing. Price matters no matter what day it is. So far, this is just a waaaaaay oversold move. No bases, nothing to play off of. Tomorrow a half day. See you in the A.M.